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2007 February Report of the Auditor General of Canada
Exhibit 5—Replacement of the Teslin River bridge deck—impact of low cost estimates
Pursuant to an agreement made under the Canada Strategic Infrastructure Fund (CSIF), the governments of Yukon and Canada share the costs for the reconstruction of the Alaska Highway between Champagne and Haines Junction and the rehabilitation of seven bridges between Watson Lake and Whitehorse, at a total estimated cost of $31,260,000. The federal contribution from Transport Canada is $15,000,000.
The original target total cost for replacing the Teslin River bridge deck was established at $6,500,000. The Department of Highways and Public Works hired a consultant to prepare the pre-tender construction cost estimates, which came to $6,930,000. However, the lowest bid received was $8,135,000. As a result, the Department had to seek Management Board approval to increase the target total cost to $8,635,000. Because of the unexpected increase in the cost of replacing the Teslin River bridge deck, there would be a shortfall of funds to complete all seven bridges. The Department recommended that work to replace the bridge deck work at Lewes River be delayed to free up the funds for the Teslin River bridge.
At the time of our audit, Transport Canada advised the Department that reallocating funds of this magnitude would require federal Treasury Board approval. Transport Canada also advised that removal of a project or projects may be problematic as it has not happened elsewhere with other CSIF projects. The Government of Yukon may be required to absorb the funding shortfall.
Source: Department of Highways and Public Works